Glenda has been self-employed for many years and prepares accounts to 31 March each year. Her adjusted profits (after deduction of capital allowances) are currently running at approximately £80,000 per annum. She has no other income for tax purposes and she is not a Scottish taxpayer.

Glenda is now considering incorporation and she would like to see a comparison of her current tax liability (including NICs) and the liability that would arise if she traded as a small company, with herself as the sole shareholder and director.

(a) Assuming that Glenda continues to operate as a sole trader and that her adjusted trading profit for the year to 31 March 2021 is £80,000, calculate the total liability to income tax and NICs for tax year 2020-21.

(b) Estimate the total liability to income tax, NICs and corporation tax that would arise for the year if Glenda formed a company and extracted £60,000 of the company's profit for the year either:

(i) as a salary (so that her salary plus secondary NICs would total £60,000), or

(ii) as a £60,000 dividend.

(c) In case (b), how would the total liability be affected if Glenda took £8,788 in the form of a salary and the remainder of the £60,000 as a dividend?

Assume for the sake of simplicity that all director's remuneration and dividends are taken during tax year 2020-21. Perform all calculations to the nearest £.